Uber nears €12.5bn deal to acquire Delivery Hero
Uber is close to acquiring Delivery Hero for €12.5 billion, according to the Financial Times. The deal would significantly expand Uber Eats' footprint in key international markets.
Key Numbers
Uber Technologies (UBER) is nearing a deal to acquire German food delivery company Delivery Hero for approximately €12.5 billion ($14.34 billion), the Financial Times reported on Wednesday. Delivery Hero confirmed it is in advanced negotiations with Uber regarding a potential takeover.
Deal Details
- Value: €12.5 billion (cash and stock)
- Delivery Hero market cap: ~€11.6 billion
- Premium: ~7.8% above market cap
- Status: Advanced negotiations, confirmed by Delivery Hero on Tuesday
Rationale
Uber aims to expand its Uber Eats delivery network in Europe, the Middle East, Asia, and Latin America, where Delivery Hero has a strong presence. The acquisition would also bolster Uber's competitive position against rivals like DoorDash and Just Eat Takeaway.
Regulatory Challenges
The deal is expected to face antitrust scrutiny in Europe and other regions. Regulators may require asset divestitures to approve the transaction, given Uber's growing market share in food delivery.
Stock Impact
Uber shares rose 1.2% in pre-market trading. Investors are likely to focus on potential synergies and geographic expansion, though regulatory risks could weigh on the stock in the near term.
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